GE HealthCare’s Q2 Sales Fall Flat; Lowers Full-Year Guidance

GE HealthCare has released financial results for the second quarter of its fiscal year 2024.

The company’s Q2 revenue of $4.8 billion is flat as reported and up 1% on an organic basis compared to the previous year’s quarter. Its net income margin was 8.9%, compared to 8.7% for the prior year. Net income was $428 million versus $418 million for 2023.

The Imaging segment accrued $2.59 billion in Q2 revenues (-1% as reported). Ultrasound reported $823 million in sales (-2% as reported) and Patient Care Solutions reported $772 million (flat as reported). Pharmaceutical Diagnostics’ $639 million was the only segment to grow in Q2, rising 12% as reported.

Adjusted earnings before interest and taxes (EBIT) was 15.3% versus last year’s 14.8%. Diluted earnings per share (EPS) were $0.93 versus $0.91 for the prior year. Adjusted EPS was $1.00 versus $0.92.

As a result, GE HealthCare lowered its full-year guidance to the range of 1-2% versus the prior guide of about 4%. This was mainly a result of headwinds in the Chinese market.

“In the second quarter, we delivered year-over-year sales growth and margin expansion despite headwinds in the China market,” said GE HealthCare president and CEO Peter Arduini. “We also reported solid orders growth with particular strength in the U.S., as healthcare systems invest in technologies that enhance patient care and improve productivity. We are pleased with our continued progress in advancing our margin goals, while continuing our investments for future growth.”

“The recent Centers for Medicare & Medicaid Services reimbursement proposal has the potential to benefit patients in the U.S. facing cancer, cardiovascular, and neurological diseases,” Arduini continued. “We believe this will unlock the value of our radiopharmaceuticals and PET and SPECT scanners, ultimately enabling more precise diagnostic and treatment planning for patients. We’re optimistic about our pipeline of innovation and ability to bring differentiated solutions to market.”

Q2 and recent highlights

• Started partnership with Amazon Web Services (AWS) to build generative AI apps
• Began deal to acquire Intelligent Ultrasound’s clinical AI software business
• Topped the FDA’s list of AI-enabled medical device authorizations for third year running
• Unveiled Signa Magnus head-only MR scanner
• Rolled out Caption AI-driven software on Vscan Air SL handheld ultrasound
• Closed the acquisition of MIM Software